MCY Stock Recent News

Safety Insurance shows improvement but still struggles with underwriting losses; maintaining a "HOLD" rating due to ongoing challenges and valuation concerns. Mercury General has turned a corner with better underwriting results, but California wildfires pose significant risks to its recovery. Safety Insurance's dividend remains secure, supported by investment income, but the focus should be on improving underwriting margins.

LOS ANGELES , Jan. 20, 2025 /PRNewswire/ -- Mercury General Corporation (the "Company" or "Mercury") is providing more information about the recent Southern California Wildfires, known as the Palisades and Eaton fires (collectively, the "Wildfires"), and the Company's reinsurance program.  Most of the affected areas are closed due to ongoing hazardous conditions.

Mercury General Corporation faces significant exposure to LA wildfires due to its high concentration of homeowners insurance in California. Despite the potential $251 million hit, Mercury's reinsurance coverage and strategic risk management ensure solvency and future profitability. The recent 16% MCY stock price dip appears to be an overreaction, presenting a tactical buying opportunity.

Company Stands With Californians as They Begin Their Rebuilding Efforts LOS ANGELES , Jan. 17, 2025 /PRNewswire/ -- Mercury Insurance is providing comprehensive support to its customers impacted by the ongoing Los Angeles area wildfires. The company is prioritizing the timely handling of claims, providing immediate financial support, and helping insureds through the claims process.

Climate change and extreme weather events, particularly wildfires, are increasingly impacting the profitability of Property & Casualty insurance companies. Insurance companies are adapting by raising prices, being more selective in underwriting, or exiting high-risk markets like California due to severe losses and regulatory constraints. The recent LA wildfires are expected to be the costliest in U.S. history, significantly impacting insurers, especially Mercury General, due to its high concentration in California.

The Los Angeles wildfires, while tragic, may present an opportunity for Mercury General due to potential market exits by other insurers and possible price increases. Mercury General's exposure to auto insurance, along with its reinsurance coverage, suggests it can absorb the wildfire losses, estimated at $150 million pre-tax. Despite potential risks like increased reinsurance costs and regulatory changes, Mercury General is positioned for growth and higher premiums post-wildfires.

LOS ANGELES , Jan. 10, 2025 /PRNewswire/ -- Mercury General Corporation (the "Company," "Mercury" or "We") announced today its preliminary assessment of the impact of the recent wildfires in Southern California. An extreme wind-driven wildfire event that began on January 7, 2025 has caused widespread damage across parts of Southern California.

Almost 80% of the insurer's premiums of $4.6 billion last year came from California, leaving it highly exposed to the blaze.

Company prepared to assist policyholders who have suffered home or auto loss; need living expenses reimbursement; or to file a claim for covered losses LOS ANGELES , Jan. 8, 2025 /PRNewswire/ -- The recent Santa Ana wind conditions have sparked wildfires across Southern California, forcing local authorities to issue mandatory evacuation orders for tens of thousands of residents across the region. Mercury Insurance is prepared to assist homeowner, renter and auto policyholders who have had to evacuate in response to those orders or whose property has suffered fire damage.

Innovative City Planning and State Officials' Leadership Pave the Way for Mercury Insurance to Begin Offering Homeowners Coverage to Paradise Residents in the Wake of Catastrophic Wildfire PARADISE, Calif. , Jan. 7, 2025 /PRNewswire/ -- Mercury Insurance (NYSE: MCY), a leading provider of property and casualty insurance, announced today that the company will begin writing new homeowners insurance policies in the town of Paradise, CA.